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Home My WebLink AboutMIN MAY 11 1982 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD MAY 11 , 1982 BE IT REMEMBERED that the City Council of the City of Beaumont , Texas, met in regular session this the 11th day of May, 1982 , with the following pre- sent : HONORABLE: William E. Neild Mayor Bill Cox Councilman, Ward I Joseph D. Deshotel Councilman , Ward III Wayne Turner Councilman, Ward IV Absent : Evelyn M. Lord Councilman, Ward II Ray Riley City Manager Hugh Earnest Asst. City Manager Lane Nichols Asst . City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by the Reverend Jim Bauman, Chaplain of the Beaumont International Seamen' s Center. The Pledge of Allegiance was led by Councilman Turner. -000- Bids on the sale of $15 million in waterworks and sanitary sewer system revenue bonds were received: Mr. Frank Ildebrando, financial agent from Underwood, Neuhaus & Company, opened and read the following bids : Merrill Lynch & Company (Merrill Lynch White Weld Capital Markets Group; Underwood, Neuhaus & Company, Inc. ; and Associates) : No Premium bid. Total Interest Cost - $20, 913 ,000.00 Average Interest Rate or Effective Interest Rate - 11. 7886 % First Boston Corporation; Kidder, Peabody & Company, Inc. ; Donaldson Lufkin & Jenrette, Inc. ; and Thomson McKinnon Securities, Inc. : Cash Premium bid - $ 1,937.00 Net Interest Cost - $ 21 ,113,625. 50 Average Interest Rate - 11.9017 Bear, Stearns and Company : Cash Premium bid - $ 1 , 131 . 50 Net Interest Cost - $ 21,203,368. 50 Average Interest Rate - 11.952293 Goldman, Sachs, & Company &Associates : Cash Premium bid - $ 1 ,269. 50 Net Interest Cost - $ 20,640,480. 50 Average Interest Rate - 11.6349 % The bids were taken to the City Attorney's Office for recalculation and consideration before a recommendation for sale to be acted on by Council would be made by Mr. Ildebrando later in the meeting.. -000- Mayor Neild issued the following proclamations ; "R. C. Miller Memorial Library Day in Beaumont" - May 16th; "Hospital Week" May 9-15 , 1982 ; and "Mental 11ealth Month" - May, 1982. -75- May 11 , 1982 The following Consent Agenda items were considered: Approval of the Minutes of the regular City Council session held May 4 , 1982 ; Resolution 82-166 authorizing purchase of 16 steel lockers for the Police Building locker room from Storagecraft , Inc. in the amount of $1 ,259.00; and Resolution 82-167 authorizing Municipal Court employee Dawn B. Gaudet to sign checks on the Municipal Court account . The Consent Agenda was approved on a motion made by Councilman Deshotel and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- Resolution 82-168 letting a contract to S & S Enterprises for construction of a 30 x 35-foot masonry building to house the city' s radio transmitters at a cost of $24,470. 00 was approved on a motion made by Councilman Cox and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- Resolution 82-169 letting a contract to Triangle Engineers & Designers for installation of water main extensions and fire hydrants in the amount of $97,423.50 was considered: Identification of six (6) projects with the need for improved pressures and additional fire hydrants necessary for fire protection and safety for various neighborhoods under the system improvements program was made and were included with the budget in which an expenditure of approximately $100,000 was anticipated. These six (6) projects to be constructed under this contract are : a 6-inch main on Dollinger which extends approximately 1300-feet , with one fire hy- drant to be installed 720-feet east of Hoover; a 6-inch -water line on Charles Street ; a 6-inch water main -on Amarillo which extends from Franklin to College and fire hydrants to be installed at both Milam and College ; a 6-inch main extension on Halliday from Berry .east approximately 1295-feet and two (2) fire hydrants to be installed on that extension ; a 6-inch main on Highway 124 which extends from Cardinal Drive to Lafin Road; and an 8-inch main along Baker Road from Wescalder a distance of approximately 1300-feet . Resolution 82-169 was approved on a motion made by Councilman Turner and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- Resolution 82-170 authorizing the filing of an application with the Depart- ment of Transportation , U. S. A. , for a transit operation grant from the Urban Mass Transportation Administration in the amount of $438,179.00 was approved on a motion made by Councilman Deshotel and seconded by Councilman Turner., Question : Ayes : All Nayes : None -;-Oo- Resolution 82-171 authorizing the execution of a contract with Hoover Bro- thers, Inc. , for furnishing approximately 1750 seats for the Municipal Auditorium at a cost of $174,244.00 (expenditure to come from $300,000.00 received by the City from private donation_ to be used for seating, drapes, etc. ) was approved on a motion made by Councilman Turner and seconded by Councilman Deshotel. Question: Ayes : All Nayes : None -000- -76- May 11, 1982 Resolution 82-172 appointing R. 0. Williams Chairman of the Housing Re- habilitation Loan Advisory Board (term to expire May 31 , 1984) and reap- pointing Edgar Perkins and George Petry (terms expiring May 31 , 1984) and Verna Johnson and Hester Bell (terms expiring May 31 , 1983) was approved on a motion made by Councilman Cox and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- Resolution 82-173 appointing Elmer Ashcraft (term to expire July 31 , 1983) and Glenn Haines (term to expire July 31 , 1984) to the Airport Advisory Committee was approved on a motion made by Councilman Turner and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- Ordinance No. 82-47 amending Chapter No. 1 of the City Code of Ordinances to include culpable mental state (knowingly, recklessly , intentionally , or with criminal negligence) as a provision for penal ordinances was con- sidered: ORDINANCE NO. 82-47 ENTITLED AN ORDINANCE AMENDING CHAPTER 1 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO PROVIDE FOR A CULPABLE MENTAL STATE IN EACH OFFENSE DEFINED IN THE CODE OF ORDINANCES ; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING A PENALTY. The ordinance was approved on a motion made by Councilman Deshotel and seconded by Councilman Cox. Question : Ayes : All Nayes : None -000- CITY MANAGER RILEY: In order to issue Industrial Revenue Bonds for commercial purposes , the rules of the Texas Industrial Commission require that an area be designated as blighted in order for a project to be eligible for the issuance of Revenue Bonds. Previously by resolution , Council has designated the area extending from Blanchette on the south to North Street - North Street extended on the north, from the Neches River to Forrest and Archie Streets , which is essen- tially the Central Business District area to be designated as blighted or economically deprived under the definitions promulgated by the Texas In- dustrial Commission in order to make projects within this area eligible for the issuance of Industrial Revenue Bonds. The only project which has been currently identified for which Industrial Revenue Bonds have been pro- posed to be issued is the construction of the Hilton Hotel to be located on Main Street ; however the public hearing is required in order to have these bonds to be declared eligible for issuance as Industrial Revenue Bonds. How- ever, other issues might be available at some other time for other developers within this district for redevelopment , reconstruction, or construction of other projects which would promote the economic redevelopment of this dis- trict . In order to proceed with the designation , a public hearing is re- quired in which comments may be made by interested parties concerning this designation and public hearing has been scheduled at this time by Council . MAYOR NEILD: We would declare that the public hearing on the designated portion of the Central Business District as an eligible blighted area be open at this time and any of those who would like to come forward and speak in favor of this if you will come to the podium and state your name and address and then we will ask for those opposed to do the same. So, if any of those that are speaking in favor of this today, please come forward. -77 May 11 , 1982 Mr. Dennis Sederholm, President of the Beaumont Chamber of Commerce, ad- dressed Council to speak in favor of the designation as blighted for the eligibility of the area for receipt of Industrial Revenue Bonds. No one spoke in opposition to the designation. The public hearing was declared closed and the regular City Council ses- sion reopened. -000- Resolution 82-174 designating a portion of the Central Business District as an eligible blighted area under the terms , conditions , and the defini- tions of the Texas Industrial Commission was approved on a motion made by Councilman Turner and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- Report by Mr. Ildebrando on the bids received for the sale of $15 million in waterworks and sanitary sewer system revenue bonds given. MR. ILDEBRANDO: As I indicated earlier , the apparent high bidder was Goldman , Sachs & Com- pany and after calculating the bid it has proved out to be so. The inter- est rates I would like to go over with the Council are : The bonds matur- ing from 1984 through 1991 at 13%; 1992 at 11%; 1993 @ $11176; and 1994 through 1998 @ 11. 4%. Again , the total interest cost in dollars was $20,640,480. 50. The average rate of all the bonds we are issuing was 11.6349 0. I believe the bid is an excellent bid in the current market conditions . The rates which we had proposed on this issue or projected on this issue when we started on it some 60 to 90 days ago was 121%. We were considerably under that projection. So, I would recommend that the Council does accept and award these bonds. Ordinance No. 82-48 awarding the sale of $15 million in waterworks and sani- tary sewer system revenue bonds to Goldman , Sachs and Company was considered: ORDINANCE NO. 82-48 ORDINANCE AUTHORIZING THE ISSUANCE OF $15,000 ,000 CITY OF BEAUMONT, TEXAS , WATERWORKS AND SEWER SYSTEM PRIOR LIEN REVENUE BONDS, SERIES 1982. The ordinance was approved on a motion made by Councilman_ Cox and seconded by Councilman Deshotel. Question : Ayes : All Nayes : None -000- There being no further business , the meeting was recessed before continu- ing with the City Council Workshop Session. . -000- I , Myrtle Corgey, City Clerk of the City, of Beaumont , Texas , certify that the above is a true copy of the minutes of the regular City Council session held May 11, 1982 . Myrtle Corgey City Clerk -78- May 11 , 1982